Pilmico will spend USD$28 million to buy Vietnamese aquafeed manufacturers, Vinh Hoan Corporation (VHC).
Pilmico International will acquire from VHC a seventy percent (70%) equity stake in Vinh Hoan 1 Feed JSC (VHF). The remaining thirty percent (30%) will be purchased within five (5) years at a pre-agreed price set out in the Agreement. The purchase price for the entire transaction is approximately USD28 million, with the transaction expected to be closed next month.
VHF is the fourth largest aqua feed producer in Vietnam. AEV, through its food subsidiary, Pilmico Foods Corporation (Pilmico), manufactures and sells flour, feeds and their by-products.
Vinh Hoan 1 Feed JSC is a leading and trusted supplier of aqua feed based in Dong Thap, Vietnam. Founded in 2007, it operates a 130,000 tons per year aqua feed facility producing primarily pangasius feed. Its R&D team operates a pilot farm facility to continuously improve pangasius health and productivity.
Truong Thi Le Khanh, Chairwoman of VHC commented, "Pilmico is a highly reputable feed producer and we look forward to working closely with Pilmico in the future. VHC and Pilmico will conduct joint research in feed formulation in order to produce the highest quality pangasius products to our customers worldwide".
Sabin Aboitiz, President and CEO of Pilmico noted, "We are delighted to have this opportunity to expand our feed business and to enter Vietnam with such a strong and well respected partner as VHC".